Category Archives: News Articles

AG Zoeller files lawsuits against local businesses

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By Rob Earnshaw Times Correspondent HOBART | It was just a “day in the life” for the Indiana Attorney General’s Office as it completed its move from Merrillville to Hobart’s Police, Court and Community Complex. Indiana Attorney General Greg Zoeller filed five lawsuits ranging from foreclosure consultants to violations by local used car dealerships in Lake County. First Financial Link LLC and Josegan Inc., both of Florida, are accused of bilking two Lake County victims for a total of $3,500. The businesses promised to reduce homeowners’ interest rates or monthly payments in exchange for an upfront fee. The companies also did not register a $25,000 surety bond with the Attorney General’s Office to conduct business as foreclosure consultants in the Indiana. “These are things we’re very aggressive about,” Zoeller said. “We’ll probably find out after we file this how many other people might have been similarly scammed. Right now we’re telling people don’t pay money up front to foreclosure rescue outfits.” Hometown Motors in Gary and Luke’s Family Motors in Highland face lawsuits for allegedly taking advantage of consumers by rolling back odometers. The Attorney General’s Office said Hometown Motors and its owner John F. Petrassi are accused of knowingly reporting inaccurate mileage and year of a used vehicle and failing to provide titles to purchase vehicles. Luke’s Family Motors, in addition to an accusation of misrepresenting mileage of a used vehicle, is accused of violating the terms of a previous settlement reached with the Attorney General’s Office. “That will up the ante when it comes to penalties,” Zoeller said. “The first time we can usually work something out that makes it clear we’re paying close attention. The second time you’re in real trouble.” The Attorney General’s Office also filed a lawsuit against The Vacation Store and its owner Tom … Continue Reading

Dealer made £100,000 by clocking (Approximately $ 200,000 U.S. Dollars)

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A used-van dealer wound millions of miles off odometers and illegally made over £100,000 (Approximately $ 200,000U.S. Dollars)  in just 10 months, according to Trading Standards Agency (TSA) officers. Maxwell Stuart Alvey, 50, from Gedling Road in Arnold, Notts, pleaded guilty to 10 separate charges of fraud and is now awaiting sentence at Nottingham Crown Court. His then-partner Jane Louise Starbrook was cleared of any involvement in the case at an earlier hearing. TSA officers launched an investigation into Alvey’s business after receiving several complaints regarding unusual wear and tear on vehicles with relatively low mileages. In the worst example seen by the court, Alvey took almost 300,000 miles off the odometer of a Mercedes van. Clocking is one of the most widespread illegal practices found in the used car industry. The fraudulent practice involves using computers or mechanical tools to physically wind back the number of miles displayed on a cars odometer, allowing the dealer to sell the vehicle for a higher price than would otherwise be possible. Buyers of used cars are reminded that careful checking of a vehicle before purchase is a vital precaution, as doing so can allow buyers to avoid cars that are likely to break down or encounter other problems after getting the car on the road. Article found at: http://www.rac.co.uk/news-advice/motoring-news/post/2012/5/dealer-made-100000-by-clocking/

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Making A Federal Case Out Of Odometer Fraud

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You know, not every lawsuit involves complex issues of law – not every case is filled with earth-shattering allegations. Sometimes the law is mundane. However, just because a case involves some familiar allegations and easily understandable facts doesn’t render the matter uninteresting. For example, take the federal lawsuit in the District Court for the Middle District of Louisiana against Beau Michael Guidry of Baton Rouge, LA., the owner of Affordable Imports in Denham Springs, LA. According to federal prosecutors, Guidry purchased high-mileage motor vehicles online through eBay and from wholesale automobile auctions in Louisiana, Mississippi and Texas. At the time that Guidry resold the vehicles at his lot or on eBay, many of the vehicles were over ten-years old. That’s an important milestone as many used car buyers know because Guidry was not required certify in writing the accuracy of the mileage. You may have your heart set on that Ford or GM truck, your kid may need a set of wheels and you’re thinking about a Honda or Nissan — there’s this great deal at the local used car lot or the nearby AutoNation. On the other hand, you saw this great deal on eBay or your next door neighbor says he has a friend of a friend. Hey, you’re a big boy or girl, you know the risks. As long as it’s a fair deal. Yeah, sure — these “as is” sales are the stuff of legend – with caveat emptor being the rule of the road and buyers well advised to have a mechanic check out the auto before handing over the purchase price. More than a few so-called cherries have proven to be held together with chewing gum or rubber bands, or were found floating in some swamp after a hurricane. The funny thing about the lore of … Continue Reading

Five Arrested in Organized Crime Ring

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On Friday, the Pinellas County Sheriff’s Office announced it had arrested five men in an $3.1 million racketeering scheme. The Sheriff’s Office also said it is still searching for five more suspects. Botchev was the ‘ring leader’ according to the Sheriff’s Office. He was arrested Thursday. Credit William MansellIn 2008 the Pinellas County Sheriff’s Office began an investigation into a $3.1 million racketeering scheme involving luxury car and credit card fraud. Five suspects were arrested Thursday in what the Sheriff’s Office is calling an organized crime ring. Five more suspects are still at-large. Arrested Suspects: Tihomir Botchev, 32, of 291 Keating Drive, Largo Ivan Petrov, 31, of 2461 61st Lane, St. Petersburg Georgi Angelov, 28, of 11440 8th Way N., St. Petersburg Martin Jordanov, 27, of 4046 11th Street N, St. Peterburg Lubomir Sandov, 47, 600 Brookside Drive, Clearwater “Thanks to a partnership among national, state and local agencies, we have brought down a multi-million dollar fraud ring that has targeted local businesses in the Tampa Bay region, said Florida Attorney General Pam Bondi in a news release. “I am grateful to the Secret Service and the Pinellas County Sheriff’s Office for their dedication to stopping this criminal operation.” According to investigators, the suspects engaged in obtaining lines of credit in the form of credit card accounts and vehicle loans by providing false and/or inflated information to the lending institutions; and subsequently defaulting on those lines of credit. The credit card activities centered on the creation of multiple fraudulent credit card accounts, investigators said. The suspects would then use the credit cards to make high-dollar purchases through collusive or shell corporations before the accounts went into default. While the credit card applicants listed on the merchant account applications were listed in the names of several of the above listed suspects, … Continue Reading

In loan case, jury awards Independence woman more than $1 million

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An Independence woman recently won a $1,198,512 court judgment, with jurors finding that a finance company had misled her into making car payments she wasn’t obligated legally to pay. The case, her lawyers said, pointed to an abusive lending practice that cuts particularly deep during tough economic times. Lawyer Bernard Brown, who represented the woman, said the Missouri Merchandising Practices Act protects consumers who are unable to obtain car titles when their dealers go out of business. The law views such sales as “fraudulent,” and purchasers are not required to keep making payments if they cannot obtain the titles, Brown said. “Consumers don’t know that they don’t have to pay, and in fact are entitled to all their payments back and their credit cleaned up,” Brown said. How many consumers get stuck with such cars after dealers go out of business is difficult to say, acknowledged Brown, whose law practice specializes in automotive issues. But Missouri Department of Revenue figures show a 9 percent decline in the number of car dealer licenses issued in Jackson County between 2006 and 2010. The problems for Brown’s client, Carrie Peel, began in August 2008 after she purchased a 2005 Ford Taurus for $12,450 the previous month, paying $3,500 down and financing the rest. Her 30-day temporary license tag was expiring and she went to the Department of Revenue to license the car. Her dealer paperwork didn’t include the title, which she needed for the license. But she got a shock when she returned to the dealer. “When I went back up there, they were closed for business,” Peel said recently. “I’m looking in the window, and they’ve closed.” The dealership had, however, sold her installment contract to Credit Acceptance Corp., a Michigan lender that is one of its industry’s leaders. In her suit, … Continue Reading